Forex news for Asia trading Wednesday 16 January 2019
Brexit:
After the gyrations for GBP surrounding the UK parliament's vote on PM May's deal Asian markets were more subdued on the currency. There were plenty of news and opinions pieces bandied about but after a 50-odd point drop in the Asian morning for cable it pretty gained a lot back and is net little changed on the session
'Little changed' won't last in the hours ahead as another tumultuous day approaches in the Commons, with at least one 'no confidence' vote to occur.
Brexit related posts today (read from the bottom up for chronological order):
- PIMCO on the UK, Brexit and the Bank of England
- Macquarie on Brexit and GBP
- ANZ on what's next for Brexit
- UK data - Visa report spending fell by most in 8 months in December
- More from South Korea on Brexit - will take steps to stabilise markets if needed
- South Korea sees limited impact from Brexit on economy
- What GBP does next depends on PM May's moves
- Brexit - Reuters report there are MPs moving to delay Article 50
- Scottish First Minister says its now time for a second Brexit referendum
- Brexit - Sky News reports up to 100 Labour MPs will 'pivot' to a 2nd referendum
- Brexit - Citi says the chance of an Article 50 extension is now very likely
Other:
- Reports circulating that BOJ is about to cut is inflation outlook
- TD on EUR/USD - bullish but lower conviction
- China says will work hard to ensure stable employment
- China NDRC says it has approved a new airport project (worth 32 bn yuan)
- Statements galore out of China: China to further boost consumption in 2019
- China (Dec) house price data - new home prices up 0.8% m/m and up 9.7% y/y
- PBOC giving us an early heads up for the Lunar New Year holidays coming
- PBOC sets USD/ CNY mid-point today at 6.7615 (vs. yesterday at 6.7542)
- China official says to continue focus on deleveraging
- Japan December PPI comes in below m/m estimate
- Japanese machine orders for November miss m/m estimate
- Australia Westpac monthly consumer confidence, January: -4.7% m/m
- One for the US stock and stock index traders - S&P500: Teleflex in, PG&E out
- NZ data - Electronic card spending for December, Retail -2.3% m/m (expected -0.4%)
- Westpac: "Our global data surprise index is in complete free fall"
- Trade ideas thread - Wednesday 16 January 2019
- Private survey of oil inventories shows a smaller draw than expected
Yen gained in the Tokyo morning on some (not huge) safe-haven flows in the face of Brexit uncertainty. The move was limited, though, a 30 or so point drop for USD/JPY in total. Currencies fell soon after, providing a double whammy move for yen crosses. Again, the moves were not large and have mainly recovered to be little change for AUD, CAD, EUR, NZD on the session.
There were plenty of stimulus-related announcements and comments from China today (see bullets above) ... apart from one official saying deleveraging efforts will continue.
Still to come: